Question

Leigh Company, which has only one product, reported the following results for January Selling price.... $100 Units in beginning inventory. Units produced...... Units sold.......... Units in ending inventory... 300 1,200 1,400 100 Variable costs per unit: Direct materials. Direct labor... Variable manufacturing overhead..... . Variable selling and administrative......... Fixed costs: Fixed manufacturing overhead................. Fixed selling and administrative... 59,600 $1,400 Cost of goods sold is a variable cost in this company.

Answer 1

cost of goods sold = Number of x units sold variable cost per unit Variable cost per unit Direct materials Direct labour Variable manufacturing = $17 $59. $4 overhead $80 to cost of goods only sold production costs are assigned under variable costing Cost of goods sold = 1400 units X $80 1 16112000